Corporate Scandal: A case study

1
Corporate Scandals and Public Relations

• Zambeef Zambia A case study

2
Introduction

• Strategic communication management is defined as
  controlling internal and external communication
  inside a company in order to facilitate an open
  flow of ideas and information (smart capital
  mind, n.d)
• Strategic communication management is crucial to
  public relations management
• Corporate scandals require a tactful response if
  the image of the firm is to be rehabilitated
• Johnson and Johnson talcum powder example

3
Company Profile Zambeef

• Established in 1994
• Largest integrated food retailing business in
  Zambia
• Involved in production, processing, distribution
  and retailing of beef, chicken, milk, dairy
  products, stock feed and flour (Our Profile
  ZAMBEEF Products PLC, n.d.)
• Over 80 retail stores and 5000 employees
• Generated ZMW267million (roughly 14.8 million)
  in profits in 2021 (Zambeef Products Plc 2021
  Annual Report ZAMBEEF Products PLC, n.d.).

4
Zambeef corporate scandal

• June 2013
• Health inspectors from the Ministry of Health
  tested companys meat samples and they were found
  to be unsafe
• Tested positive for a chemical used to embalm
  dead bodies
• Allegations denied and labelled as smear
  campaign
• Sales fell 15 within a week of the scandal
  breaking

5
Damage Control Strategies and Tactics used

• Mass media (television, radio, newspapers)
• Various print media
• Press briefings
• Opinion leaders

6
What could have been done differently?

• Take ownership of your mistakes
• Issue a sincere apology
• Share preventive measures you will incorporate in
  business
• Maintain a united front

7
Recommendations

• Honesty is the best policy
• Be well prepared to handle the scandal
• Rebrand the business where possible
• Regain favour of the public through offering
  incentives

8
References

• About Public Relations. (n.d.). www.
  https//www.prsa.org/about/all-about-prtextE
  2809CPublic20relations20is20a20strategic
• Our Profile ZAMBEEF Products PLC. (n.d.).
  Zambeefplc.com. https//zambeefplc.com/our-profile
  / ?
• What Is Strategic Communication Management? (with
  pictures). (n.d.). Smart Capital Mind.
  https//www.smartcapitalmind.com/what-is-strategic
  -communication-management.htm
• Zambeef Products Plc 2021 Annual Report ZAMBEEF
  Products PLC. (n.d.). Zambeefplc.com. Retrieved
  July 2, 2023, from https//zambeefplc.com/zambeef-
  products-2021-annual-report/